Question

How did the economic context of peru impact the decisions made in the tintaya mine endeavor?

Answer 1

The economic context of Peru, which depends on global commodity prices, impacted the Tintaya mine endeavor by prioritizing export profits while navigating conflicts related to environmental concerns and the well-being of local communities. Historical mining operations, like those in Potosí, have left a legacy that influences current decisions involving extraction activities.

Step-by-step explanation:

The economic context of Peru had a significant impact on the decisions made regarding the Tintaya mine endeavor. Peru's economy, like those of Ecuador and Bolivia, is largely dependent on the global prices of export products such as minerals, leading to conflicts over who controls the wealth from extractive activities, including mining operations. The controversial environmental and health issues that arise in mining areas such as the Tintaya mine often lead to clashes between local communities and mining corporations, and these issues are compounded by fluctuating commodity prices that affect the stability of such investments.

Anthropologist Fabiana Li observes that protests against mining operations, like those around the Cerro Quilish mountain in Peru, emerge when local communities and activists view such endeavors as threats to their environment and cultural sites. On the other hand, the mining companies often respond with technical solutions that might not adequately solve the core issues, such as pollution and degradation of lands. Given this conflict, economic decisions regarding mining ventures like Tintaya have to consider not only financial profits but also environmental sustainability and social responsibilities.

Mining has long been a key factor in the economy of this region, from the silver mines in Potosí during the colonial era, which significantly contributed to the Spanish economy, to the current export-focused mineral extraction. As a result, the economic decisions related to mining operations in Peru must take into account these historical perspectives, along with the social, environmental, and political factors present in modern times.

Answer 2

The explorations that led to the discovery of Tintaya mine go back to 1917. In 1971, the Peruvian government promoted the exploitation of the mine. In 1980, the expropriation of approximately 4,000 hectares of land, owned by the communities, was carried out. It is for this reason that started a dispute between the commoners and the Company. In 1985 the exploitation of Tintaya began and it became the third producer of the country. In 1994, the mine was bought by Broken Hill Proprietary (BHP), who subsequently merged with the company Billiton, forming the second biggest group in the world production of minerals. In 2001, the first proposal for the framework agreement was made public. An agreement was reached and the framework agreement was consolidated in 2003. The signature of the framework agreement was an innovative milestone. Never before, a mining company had agreed to transfer a percentage of profits to communities and to engage to dialogue with them at all times. In 2005, a violent takeover occurred of the Tintaya facilities. A reformulation of the framework agreement was demanded. The implementation of the framework agreement was taking place very slowly. The president of BHP Billiton had to suspend the mining activity until a new agreement was reached. Then the negotiations began again. Xstrata Cooper (now Glencore) bought Tintaya from BHP Billiton in 2006. The owner changed, but the same conflicts and mobilizations continued until 2012. The last stoppage lasted eight days. During this paralysis, violent acts occurred and even the mine was asked to close, which was completely rejected by the government. Finally, at present, no resolution or reformulation of the framework agreement has been reached.